Investment for Beginners is Lacky and Risk Big and Fortunately

When I hosted a seminar this April, there was a question that would have an interesting answer to cover in an article.

A college student who realizes that saving is increasingly irrelevant to future benefits, argues that the slogan of saving the rich base seems to be increasingly unproven.

Furthermore, he said he wanted to invest immediately, but felt the need to avoid the risk because as a young man who has limited funds and knowledge.

At the seminar, he asked about what investment is right, which can start a little, but not invest in property. Although according to him, property investment is minimal risk and potentially big profits.

This question is interesting. Before answering it, I disagree with the opinion that as a young novice, it is afraid to take higher risks.

Different when I started investing a few years ago, exactly 12 years ago. I know that as a layman, there is no problem with a risky thing. Toh still young and I want to study the science of investment for the provision in the future.

Precisely reversed on what should be avoided. There is a true story about an employee who gets a chance to retire early at age 50 and earn some pension.

After the accelerated retirement was granted, severance pay was received, the father realized that his severance pay was not enough to cover the remaining cost of life. Can not even exceed 60 years.

So, the decision of the father was to use his severance fund to start trying.

Instead of succeeding, the business fails, and instead removes the severance pay that is supposed to meet his life needs.

Much happens, when it gets older, people even dare to take risks that should not be worth taking.

Surprisingly, a young man who has a longer journey time, a living dependent that is virtually non-existent, is afraid of taking an opportunity with risk.

The older principle the more desperate we should avoid. That’s because the time to start over when we’ve experienced a failure becomes increasingly narrow.

Talking about investment instruments that are minimal risk and big results, as long as I know the world of investment, it can be spelled out between there and no.

The law of high risk, high gain (high risk, high profit potential) still holds. When an investment has a huge profit potential then the high risks will also go side by side.

If we choose a relatively safe stock, say the stock of a company whose product is used by almost everyone and is 100 years old, then the potential profit will be smaller.

This is because the risk of bankruptcy becomes smaller when compared with companies that sometimes profit and sometimes loss, namely high potential and high potential loss.

On investment, I finally think that it is true high risk, the potential of the results will be high. But it could be low risk, but the result is relatively high when adding time factor.

Like investing in 100-year-old stocks above, having them within days is clearly at risk of rising (gain) and down (loss). But in a longer period of time, say 5 years, the chart of stock price movements can tend to increase.

A final conclusion about a younger person is that he is more likely to be friends with risk. The reason is simple. That is young and if it fails, time is longer.

Precisely by getting older, taking a risk that leads to massive failures that spend money then it is very dangerous because the time to start again after the failure occurs becomes narrower.

In addition, investments that have large profits with small risks in such a narrow time can not yet be found.

But when the time span is longer, the risk can be reduced and the profits can be attractive.